More staff cuts at Enesco Group

Itasca-based Enesco Group Inc. Wednesday said it would eliminate another 45 positions as part of its continuing cost-cutting strategy.

The majority of the jobs are in the Chicago area, the company said in a statement. Enesco's showroom, warehouse and distribution facility is based in Elk Grove Village.

The company, which distributes gift, collectible and home décor items, anticipates one-time costs associated with Wednesday's workforce reduction will be about $300,000 and will produce annual savings of about $3.5 million.

Enesco President and CEO Dan DalleMolle said in a statement, "As we move through our strategic restructuring plan, we will continue to streamline operational costs." The company also will continue to invest in new products and marketing efforts, he said.

This is the second round of job cuts since Mr. DalleMolle came to Enesco in March from Freeport-based Newell Rubbermaid Inc. where he was group president of hardware. Enesco cut 120 positions throughout the company in May. At the time, a company spokeswoman left open the possibility for more reductions (ChicagoBusiness.com, May 4).

The company, which markets products such as Harry Potter and Precious Moments collectibles, has suffered from falling revenues. Excluding one-time items, Enesco reported a second-quarter operating loss of $900,000, compared with a $1.1 million operating profit for the second quarter of 2000. Commenting on the results, reported July 24, Mr. DalleMolle said they were "in line with expectations."

In total, Enesco anticipates $11.5 million in annual savings from its 2001 workforce cuts.